USDA Offers $221 Million in Clean Energy Loans and Grants

March 12, 2008

The U.S. Department of Agriculture (USDA) announced on March 6 that it
will accept $220.9 million in loan and grant applications under the
agency's Renewable Energy Systems and Energy Efficiency Improvements
Program. Loan guarantees and grants are available to agricultural
producers and rural small businesses to purchase and install renewable
energy systems or to make energy efficiency improvements. Since 2001,
the USDA has invested $674 million in more than 1,763 renewable energy
and energy efficiency projects, including renewable fuels such as
ethanol and biodiesel and renewable energy sources such as methane gas
recovery systems and wind, solar, geothermal, and biomass energy
systems.

Eligible applicants may seek loan guarantees to cover up to 50% of a
project's cost, not to exceed $10 million. Grants are available for up
to 25% of a project's cost, not to exceed $250,000 for energy
efficiency improvements and $500,000 for renewable energy systems.
Grants will be awarded through two separate competitions, with the
deadline for the first being April 15 and the deadline for the second
being June 16. Applications for loans or loan and grant combinations
are due by June 16. See the USDA press release and the program Web
page.

The USDA also announced its award of more than $4.1 million to help 17
small businesses and community groups find more innovative uses of
woody biomass, including renewable energy uses. The grants range from
$170,000 to $250,000, while the project participants are providing as
little as $65,590 to as much as $1.3 million for each project. The
grants will be awarded to organizations in Arizona, California,
Colorado, Idaho, Montana, Nevada, New Mexico, Oregon, and South
Dakota, including the Coquille Tribe of Oregon. See the USDA press
release.